Real Estate Invesment Trusts In Asia To Rise

The number of Real Estate Investment Trusts (REITs) in the Asian Continent is going to swell over the coming 3 to 4 yrs according to HSBC. It will be because of increasing call for investments in more risk disinclined properties.

REITs invest in commercial properties mainly and pay rent collected from their properties to shareholders as dividend. This is why some investors see them as safer investments than property stocks.Another advantage is that they usually offer returns that are higher than yields of government bonds.

The increased activity in the REIT IPO market this year especially in the Asian continent is due to successful listing of Cache Logistics Trust in Singapore. Also Sunway City plans to list its REIT in Malaysia come July.

Kern anticipates Singapore to witness most of the activity with more than 20 to be listed there in the coming years from companies all across it’s continent. It already has more than 20 listed REITs such as Fortune, Saizen from Hong Kong and Ascends from India.